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Information for two alternative projects involving machinery investments follows: Project 1 Project 2 Initial investment$ ( 1 2 0 , 0 0 0 ) $

Information for two alternative projects involving machinery investments follows: Project 1Project 2Initial investment$ (120,000)$ (90,000)Salvage value010,000Annual income15,00012,000Compute accounting rate of return for each project.Based on accounting rate of return, which project is preferred?

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